A committee in the European Parliament has advanced a draft directive that would create new liability rules for artificial intelligence systems, setting up a fuller vote expected next month. The proposal is aimed at clarifying who is responsible when AI tools cause harm, a question that has become central as the technology spreads across consumer and business settings.

Supporters of the measure say clearer liability standards are needed to protect users and give companies firmer legal guidance. They argue that current rules were built for older technologies and often leave victims with limited options when automated systems fail or produce harmful outcomes.

Industry groups have pushed back, warning that tighter rules could raise compliance costs and slow innovation across Europe. They have also argued that broad liability standards may be difficult to apply in practice, especially for companies that build or deploy AI systems using third-party models and data.

The committee vote does not finalize the law, but it signals momentum for one of the European Union’s most closely watched AI policy debates. Lawmakers are expected to continue negotiating the text before the next plenary session, where the draft could move one step closer to becoming binding law.